THE "IRON MEN" - ANALYSIS OF LONG STEEL COMPANY IN MALAYSIA
There are 4 major listed long steel companies in Malaysia, we call it as the "Big Four". They are: 1. Ann Joo Resources Berhad (安裕资源有限公司) 2. Southern Steel Berhad (南达钢铁) 3. Lion Industries Corporation Berhad (金狮工业) 4. Malaysia Steels Work (M) Berhad (大马钢厂) Their main products are long steel and steel-related product, eg. steel bar, billet, wire rods, which main customers are from construction and infrastructure industries. Due to the similar nature of business, I will analyse the Big Four's together in this article. Accounting is becoming a global business language. To understand a business's story, we need to look at its financial statements, to analyse whether it's a ably-managed business. FINANCIAL POSITION Given the capital intensive nature of steel industry, maintaining a strong financial position is a key priority of the company. Hence, I will pay more attention on its book value and capital structure. Net Cash / (Debt) First, let us look at their cash posi...
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